Earnings Outlook For Palo Alto Networks

Palo Alto Networks PANW is set to give its latest quarterly earnings report on Wednesday, 2024-11-20. Here's what investors need to know before the announcement.

Analysts estimate that Palo Alto Networks will report an earnings per share (EPS) of $1.48.

Palo Alto Networks bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

The company's EPS beat by $0.10 in the last quarter, leading to a 7.18% increase in the share price on the following day.

Here's a look at Palo Alto Networks's past performance and the resulting price change:

Market Performance of Palo Alto Networks's Stock

Shares of Palo Alto Networks were trading at $386.83 as of November 18. Over the last 52-week period, shares are up 47.01%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Palo Alto Networks

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Palo Alto Networks.

The consensus rating for Palo Alto Networks is Outperform, based on 16 analyst ratings. With an average one-year price target of $422.5, there's a potential 9.22% upside.

Peer Ratings Overview

The below comparison of the analyst ratings and average 1-year price targets of CrowdStrike Holdings, Fortinet and ServiceNow, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• As per analysts' assessments, CrowdStrike Holdings is favoring an Outperform trajectory, with an average 1-year price target of $331.03, suggesting a potential 14.42% downside.
• For Fortinet, analysts project an Neutral trajectory, with an average 1-year price target of $89.55, indicating a potential 76.85% downside.
• As per analysts' assessments, ServiceNow is favoring an Outperform trajectory, with an average 1-year price target of $1008.52, suggesting a potential 160.71% upside.

Overview of Peer Analysis

The peer analysis summary presents essential metrics for CrowdStrike Holdings, Fortinet and ServiceNow, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Palo Alto Networks ranks first in revenue growth among its peers. It ranks lowest in gross profit margin. It has the second lowest return on equity.

About Palo Alto Networks

Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 80,000 enterprise customers across the world, including more than three fourths of the Global 2000.

Financial Milestones: Palo Alto Networks's Journey

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Palo Alto Networks's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.09% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Palo Alto Networks's net margin excels beyond industry benchmarks, reaching 16.34%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.42%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Palo Alto Networks's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.89% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 0.26, Palo Alto Networks adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Palo Alto Networks visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.